Article Summary, Automatically Generated By AI
Summary of Recovery Right Token (RRT)
- RRTs are digital tokens representing a limited-recourse, contingent obligation of the Bitfinex Group.
- RRTs are dependent on the recovery of Losses and are subordinated to other claims against the Bitfinex Group.
- As of November 30, 2016, there are 30,199,822.40 RRTs issued and outstanding.
- RRT holders are entitled to a share of the recovery after all BFX tokens are redeemed, at a rate of 1:1 (1 RRT = US$1.00 of recovery).
- If the remaining recovery amount is insufficient, it will be allocated among RRTs pro rata.
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Introducing Recovery Right Token: Empowering a New Era of Digital Asset Protection
RRTs constitute digital tokens that embody a limited-recourse, contingent obligation of the Bitfinex Group. These tokens represent notional credits, entirely contingent upon the Bitfinex Group’s recovery of Losses, and are subordinate to all other claims against the Bitfinex Group, including those related to the Losses. In this context, recovery specifically pertains to the retrieval of the property seized during the Event. As of November 30, 2016, the total number of outstanding RRTs issued stands at 30,199,822.40.
A Recovery Right Token (RRT) confers upon its holder a share of the recovery proceeds, but only subsequent to the redemption of all outstanding BFX tokens. In the event that sufficient recovery amounts remain following the redemption of all BFX tokens, RRT holders are entitled to participate in the recovery at a 1:1 ratio, wherein one RRT corresponds to a recovery value of US$1.00, half an RRT to US$0.50, and so forth. If the residual recovery amount is insufficient to cover RRTs on this basis, the remaining recovery amount shall be allocated among RRT holders on a pro rata basis. (Any excess recovery amounts available beyond the 1:1 ratio allocated to RRT holders shall be retained by and vest solely in the Bitfinex Group.) The Bitfinex Group reserves the right to redeem RRTs at its sole discretion, at any time, using dollars, digital tokens, or other property at prevailing market values, as determined by the Bitfinex Group.
By holding, owning, or possessing RRTs, you hereby release and hold harmless the Bitfinex Group from, and waive any claim against, the Bitfinex Group in connection with the recovery efforts undertaken as a consequence of the Event and the ensuing Losses. Furthermore, the Bitfinex Group expressly reserves all rights, claims, and defences available to it under the terms of service stipulated at bitfinex.com.